Sompo Japan adjusts its earthquake tariffs
Sompo Japan Nipponkoa Insurance has revised its seismic risk tariffs which will be adapted to the 948 zones identified by the insurer. Earthquake premiums were previously calculated in terms of prefecture; there are 47 prefectures in Japan.
The new method is more fine-tuned and relies on a large matrix of factors. It results in rising tariffs for the regions exposed to tsunamis whereas those located inlands will be entitled to reductions.
According to the insurer, 40% of the companies located in the suburbs of Tokyo, will settle higher premiums for their insurance and 60% will be entitled to discounts. These developments will depend on the risk situation, the use and structural factors (kind of construction, height, etc.). These adjustments will come to effect next February at the earliest.
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